Coding rates and options supported

Hello... I'm interested in the highest quality
possible from my ripped CD's and I was wondering
what options to choose. I tried 320bps encoding, but
the music was broken up (regular ~300ms gap every few seconds)
even though it sounded like
there was plenty of buffer available on the unit.
(BTW, I'm using AudioGrabber/LAME.)
Does the bitrate have to be <=128? 
(The web page says "Supports all MP3 bit rates".)
What about "stereo" vs. "dual stereo"? And variable
bit rate encodings? I'm going to do more experimenting,
but just wanted to know what the best options you
slimp3ers have used...

thanks,
mike

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